Quality of Work and Aggregate Productivity

We inspect the relationship between quality of work and productivity. Using Spanish aggregate data for the period 2001–2006, we find that quality of work is an additional factor to explain productivity levels in sectors and regions. Consequently, quality of work is not only an objective per se, but it also may be a production factor able to increase the wealth of regions. In our work we use two alternatives definitions of quality of work, coming respectively from survey data and from a social indicators approach. Besides, we employ two different measurements of labour productivity, in order to test the robustness of our result. We estimate our model using a simultaneous equation model for our panel of data, and we find important differences in high and low human capital sectors. The former display a positive relationship between quality of work and productivity, while the latter show a negative relationship.